CALGARY, March 20, 2014 /CNW/ - (TSX: TBE) - Twin Butte Energy Ltd. ("Twin Butte" or the "Company") is pleased to report financial and operational results for the three
and twelve months ended December 31, 2013, along with year-end reserves
and an operational update for first quarter 2014 activity.

During 2013 Twin Butte continued to enhance its asset base with the
acquisition of Black Shire Energy Inc. ("Black Shire") which added a
new, medium oil operating area and commenced its transition to a
horizontal weighted driller in all areas. The fourth quarter results
include the impact of the Black Shire operations from November 5th onwards.

Highlights of Twin Butte's successful 2013 are as follows:

Closed the corporate acquisition of Black Shire on November 5, adding
approximately 7,000 boe per day of production weighted 93% to medium
gravity oil that improves corporate netbacks while reducing corporate
decline rates.

Completed an organic capital program of $106.4 million ($77.2 million
net of dispositions) including the drilling of 97 gross (95.3 net)
wells at a 93% success rate.

Increased average annual production by 20% to 17,585 boe/d while
increasing the oil & liquids weighting to 88% from 84%.

Reinforced the sustainability of the dividend model by holding total
payout to 94% (90% net of DRIP/SDP).

Generated total proved plus probable organic drilling finding and
development ("F&D") costs of $21.39 per boe including changes in future
development costs, before revisions, representing a 1.6 times recycle
ratio based on estimated 2014 operating netbacks of $34.30 per boe.

Certain selected financial and operational information for the three and
twelve months ended December 31, 2013 and 2012 is outlined below and
should be read in conjunction with Twin Butte's audited financial
statements for the years ended December 31, 2013 and 2012 and
accompanying management discussion and analysis filed with the Canadian
securities regulatory authorities which may be accessed through the
SEDAR website (www.sedar.com) and also on the Company's website.

Three months ended December 31

Twelve months ended December 31

2013

2012

% Change

2013

2012

% Change

Financial ($ 000's, except per share amounts)

Petroleum and natural gas sales

106,849

88,673

20%

394,588

304,729

29%

Funds flow (1)

36,978

37,754

-2%

137,358

136,034

1%

Per share basic

0.12

0.16

-25%

0.52

0.67

-22%

Per share diluted

0.12

0.16

-25%

0.52

0.66

-21%

Net income (loss)

(88,028)

(5,381)

-1536%

(115,633)

31,530

-467%

Per share basic

(0.28)

(0.02)

-1300%

(0.44)

0.15

-393%

Per share diluted

(0.28)

(0.02)

-1300%

(0.44)

0.15

-393%

Dividends declared

15,577

10,579

47%

52,286

37,249

40%

Dividends declared, Post DRIP

14,208

9,443

50%

46,883

35,573

32%

Capital expenditures (2)

33,632

38,530

-13%

77,176

87,742

-12%

Corporate acquisitions (2)

356,521

134,972

164%

356,521

428,392

-17%

Net debt (3)

361,612

201,703

79%

361,612

201,703

79%

Operating

Average daily production

Heavy crude oil (bbl per day)

13,123

14,450

-9%

13,630

11,343

20%

Light & Medium crude oil (bbl per day)

4,710

672

601%

1,659

742

124%

Natural gas (Mcf per day)

11,634

13,174

-12%

12,572

14,009

-10%

Natural gas liquids (bbl per day)

188

213

-12%

201

261

-23%

Barrels of oil equivalent (boe per day, 6:1)

19,960

17,531

14%

17,585

14,681

20%

% Oil and NGLs

90%

87%

3%

88%

84%

5%

Average sales price

Heavy crude oil ($ per bbl)

60.28

58.88

2%

66.33

63.19

5%

Light & Medium crude oil ($ per bbl)

66.19

75.14

-12%

70.73

78.50

-10%

Natural gas ($ per Mcf)

3.78

3.52

7%

3.47

2.57

35%

Natural gas liquids ($ per bbl)

77.50

76.01

2%

80.02

82.74

-3%

Barrels of oil equivalent ($ per boe, 6:1)

58.19

54.98

6%

61.47

56.71

8%

Operating netback ($ per boe) (4)

Petroleum and natural gas sales

58.19

54.98

6%

61.47

56.71

8%

Cash (loss) gain on derivative instruments

1.41

4.83

-71%

0.60

5.47

-89%

Royalties

(11.50)

(9.83)

-17%

(12.78)

(11.97)

-7%

Operating expenses

(21.12)

(19.73)

-7%

(21.83)

(18.55)

-18%

Transportation expenses

(2.06)

(2.82)

27%

(2.44)

(2.52)

3%

Operating netback

24.92

27.43

-9%

25.02

29.14

-14%

Wells drilled

Gross

26.0

23.0

13%

97.0

95.0

2%

Net

24.3

23.0

6%

95.3

77.2

23%

Success (%)

96

87

10%

93

95

-2%

Common Shares

Shares outstanding, end of period

343,079,562

248,311,634

38%

343,079,562

248,311,634

38%

Weighted average shares outstanding - diluted

309,082,232

239,331,527

29%

265,191,273

205,581,356

29%

(1) Funds flow from operations and funds flow from operating netback are
non-GAAP measures that represent the total and the average per boe,
respectively, of cash provided by operating activities, before
adjusting for changes in non-cash working capital items and
expenditures on decommissioning liabilities.

(2) Corporate acquisitions is a non-GAAP measure and includes total
consideration plus working capital deficiency acquired in a corporate
acquisition. Capital expenditures is a non-GAAP measure calculated as
the purchase or sale price of an asset, plus development capital
expenditures added to PP&E. Corporate acquisitions are excluded from
this measure.

(4) Operating netback is a non-GAAP measure calculated as the average per
boe of the Company's oil and gas sales plus realized gains on
derivatives, less royalties, operating and transportation expenses.

Corporate:

As highlighted by the Company's year end financial and operational
results, during 2013, Twin Butte progressed and strengthened the
Company's business model of delivering a long term stable dividend with
moderate production growth. Strong financial discipline combined with a
focused and successful capital plan ensured the Company maintained its
monthly dividend while not overleveraging the Company's balance sheet
and maintaining an all-in payout ratio of 90%. The fourth quarter
acquisition of Black Shire significantly strengthened Twin Butte by
adding a new core operating area in Provost with financial and
performance attributes which augment and enhance the performance of the
Company's historic heavy oil assets. The acquisition significantly
improved Twin Butte's corporate sustainability by increasing its
corporate netback, decreasing its corporate decline rate while adding a
sizeable drilling inventory with capital efficiencies comparable to
Twin Butte's existing heavy oil drilling inventory.

Twin Butte's strategic shift in 2013 to more horizontal drilling
activity versus vertical delivered positive results by year end. The
Company anticipates that this strategic shift will continue in 2014
with a 75% to 80% drilling weighting to horizontal activity planned.

Financial:

Twin Butte's full year 2013 financial and operating results demonstrate
the Company's ability to pay a sustainable dividend and maintain a
strong balance sheet while completing a disciplined capital plan. The
Company paid $52.3 million in dividends ($46.9 million post DRIP) in
2013 which when combined with net $77.2 million in organic capital
spending generated an all-in payout ratio of 90%, consistent with 2012.
In the fourth quarter, the Company completed the Black Shire
acquisition for total proceeds of $356.5 million consisting of cash,
assumed debt and the issuance of Twin Butte shares to Black Shire
shareholders. A portion of the cash for the transaction was financed
with a $70 million equity issue at $1.95 per share. The Company
subsequently issued $85 million principal amount of 6.25% convertible
unsecured subordinated debentures due December 31, 2018. At year end,
Company net debt, including the debentures, was approximately $362
million, and the Company had $252.2 million drawn on its credit
facility of $400 million.

During 2013, the Company continued its successful program of non-core
asset dispositions, completing seven separate transactions for gross
proceeds of $29.6 million. These dispositions further focused the
Company's asset base with proceeds being used to partially fund the
Company's ongoing organic capital plans in its core operating areas in
Lloydminster and Provost.

Funds flow for 2013 increased slightly from 2012 reaching $137 million.
This figure is expected to increase to over $210 million in 2014 as a
result of a full year of the higher netback production from the
Provost area. Funds flow for the first quarter of 2014 is estimated to
be $46-47 million.

Being primarily a heavy oil producer, the Company was not immune to the
volatility of differentials from WTI to the WCS Canadian heavy oil
index through 2013. Industry concerns with respect to potential
transportation restrictions and refinery capacity for heavy oil barrels
translated into a WCS price varying from a high in August of $94.66 per
barrel to a low in February of $58.96 per barrel. Although
differentials have significantly contracted in early 2014, Twin Butte
anticipates continued volatility over the remainder of the year but
longer term believes a WCS price in excess of $80 per barrel is
reasonable. The Company's proactive hedging or risk management strategy
stabilized realized pricing ensuring consistency of cash flow for the
dividend and capital plan. For 2014, the Company is well positioned
with approximately 47% of its anticipated heavy oil production hedged
at approximately $75.00 per bbl. The Company has commenced layering in
hedges for 2015 at WTI prices of close to $100 per barrel and WCS
prices of approximately $77.00 per bbl.

The Black Shire acquisition has improved the Company's dividend
sustainability since the Provost area's production is medium quality
oil which, along with lower operating and royalty costs, will generate
an operating netback premium of between $15 to 20 per barrel above the
Company's Lloydminster heavy oil barrels.

Operations:

The Company's 2013 capital plan was focused in its core heavy oil area
at Lloydminster with the exception of two wells drilled in December on
the acquired Provost assets. The $106.4 million of gross capital ($77.2
million net of dispositions) capital program included the drilling of
97 gross wells (95.3 net) of which 42% were horizontal. Strategically,
this is up significantly from 2012 when only 3% of the Company's
drilling was horizontal. 2014 will see the continued the shift to more
horizontal drilling with 75% of the Company's wells anticipated to be
horizontal. This is part of the ongoing transition of the Company to a
more predictable and more sustainable base production profile.

Twin Butte's most active drilling area in 2013 was a horizontal heavy
oil development in Wildmere, Alberta. The Wildmere asset was acquired
in Q4 2012 and subsequently 30 horizontal wells were drilled on the
property in 2013. Successful step-out wells drilled on the property in
late 2013 and early 2014 have delineated an additional 20 horizontal
locations which will be pursued in 2014.

Frog Lake had four horizontal wells drilled in 2013, following up on a
successful horizontal drill in 2011. These wells should lead to
additional horizontal drilling later in 2014 and onwards.

The Swimming property had nine wells drilled in 2013, comprised of eight
vertical and one horizontal. Additional drilling at this property is
planned for 2014.

Twin Butte's most active Saskatchewan drilling program was at Celtic
where seven vertical wells were drilled in 2013. This area will see
continued activity in 2014 to follow-up on significant 2013 new pool
discoveries.

At Provost, a development horizontal drilling program commenced with two
wells in 2013 followed by 15 wells in the first quarter of 2014. Based
on the high productivity and high oil cuts on the drilled wells
completed to date, the Company anticipates drilling a minimum of 45
wells in 2014 at Provost. Two new oil and water handling facilities
commissioned at Provost late in the fourth quarter and early in the
first quarter, along with the Company's other extensive infrastructure,
will enable the new wells to be brought on stream promptly throughout
the year.

2013 production averaged 17,585 boe/d which was up 20% from the 2012
average of 14,681 boe/d. Fourth quarter 2013 production hit a new
corporate high, averaging 19,960 boe/d primarily due to the Black Shire
acquisition which was effective November 5th.

Production for the first quarter of 2014 is anticipated to be
approximately 22,500 boe/d. This rate is slightly lower than Twin
Butte's year end 2013 exit rate as difficult weather related operating
conditions were experienced during January and February. Current
production is approximately 23,000 boe/d.

Year to date, the Company has drilled 34 gross (34 net) wells, including
18 horizontal wells of which 15 were in the Provost area. The Company
has prepared for breakup by positioning three drilling rigs on pads to
drill 12 wells during the first six weeks of Q2. These wells will be
completed and tied-in after break-up when field conditions permit.

Reserves:

In 2013, Twin Butte continued to grow corporate reserves through its
organic capital plan (drilling) and the strategic acquisition of Black
Shire. Year-end proved and proved and probable reserves were up 22% and
21% respectively, from year end 2012 levels. With 100% of the Company's
2013 capital activity directed towards oil, the liquid reserve
weighting grew to 80% from 73% in 2012.

For reconciliation purposes, the 2013 capital plan was broken down as to
$106.4 million, $29.2 million and $356.5 million, respectively, for the
drilling, disposition and acquisition program. The tables below show
additions by each commodity and reserve classification. The Company's
organic drilling program added 6.1 MMboe's of reserves whereas
acquisitions added 18.0 MMboe's of reserves partially offset by 2.9
MMboe's of reserve dispositions. Changes or negative revisions to the
year end 2012 reserve estimate were 2.7 MMboe's or 4.8% of the year end
2012 reserves. These changes were primarily in the probable category as
Twin Butte experienced positive revisions on a proved basis for the
second year in a row. Proved producing reserves booked at year end 2012
also experienced positive revisions. Approximately 20% of this revision
was in natural gas where Twin Butte has not directed any capital for
the past three years. Earlier reported performance issues at the
Company's Primate property in western Saskatchewan accounted for an
additional 20% of the negative revisions. The Company's move to a
greater percentage of its drilling activity being horizontally based is
a direct reflection of the target sizes and average booked reserve per
vertical well getting smaller. Overall, the organic program generated a
very reasonable finding and development cost of $21.29 per boe
including changes in forward development capital, however,
incorporating the negative revisions, this figure increased to $38.46
per boe.

The acquisition component of Twin Butte's 2013 capital plan was
dominated by the Black Shire acquisition which added approximately 18
MMboe's of reserves. These reserves were added at a very attractive
price of $23.93 per boe including forward capital but excluding any
value for undeveloped land which the Company anticipates will generate
a forward recycle ratio of close to 2.0 times.

All-in finding development, acquisition and disposition costs, including
changes in forward development capital was $24.22 per boe before
revisions and $27.76 per boe including revisions. At year end 2013, the
Company had 385,000 net acres of undeveloped and non-producing acreage
which was independently valued at year end at $83 million.

The Company's reserves data set forth below is based on an evaluation
and review completed by the independent reserve engineering firm,
McDaniel & Associates Consultants Ltd ("McDaniel"), with an effective
date of December 31, 2013. McDaniel evaluated approximately 74% (90%
of total proved plus probable future net revenue discounted at 10%) of
Twin Butte's assigned total proved plus probable reserves and reviewed
the internal evaluation completed by Twin Butte on the remaining
portion, which primarily included certain non-core natural gas
properties. McDaniel's evaluation and review was prepared in accordance
with standards contained in the Canadian Oil and Gas Evaluation
Handbook ("COGEH") and the reserves definitions contained in National
Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities
("NI 51-101") and the COGEH.

Summary of Total Company Reserves

Forecast Prices and Costs

Light and Medium
Crude Oil

Heavy Oil

Natural Gas
Liquids

Reserve Category

Gross (1)

Net (2)

Gross (1)

Net (2)

Gross (1)

Net (2)

(Mbbl)

(Mbbl)

(Mbbl)

(Mbbl)

(Mbbl)

(Mbbl)

Proved

Developed Producing

2,656.1

2,471.9

14,254.3

12,353.4

1,788.6

1,209.5

Developed Non-Producing

47.7

44.7

1,862.8

1,585.0

392.9

264.8

Undeveloped

485.3

420.0

7,634.0

6,615.0

336.2

235.3

Total Proved

3,189.1

2,936.5

23,751.1

20,553.5

2,517.7

1,709.7

Probable

1,840.4

1,622.8

22,642.3

19,146.2

949.9

653.3

Total Proved Plus Probable

5,029.5

4,559.3

46,393.4

39,699.7

3,467.6

2,363.0

Total Proved Plus Probable Developed Producing

3,585.8

3,323.4

19,898.5

17,083.6

2,163.9

1,465.9

Forecast Prices and Costs

Natural Gas

Oil Equivalent(3)

Reserve Category

Gross (1)

Net (2)

Gross (1)

Net (2)

(MMcf)

(MMcf)

(Mboe)

(Mboe)

Proved

Developed Producing

41,310.8

34,510.7

25,584.1

21,786.6

Developed Non-Producing

7,086.1

5,733.8

3,484.4

2,850.2

Undeveloped

6,996.4

5,871.6

9,621.6

8,248.9

Total Proved

55,393.4

46,116.1

38,690.1

32,885.8

Probable

24,623.2

20,209.7

29,536.5

24,790.5

Total Proved Plus Probable

80,016.6

66,325.8

68,226.7

57,676.3

Total Proved Plus Probable Developed Producing

51,372.2

42,864.7

34,210.3

29,017.0

(1) "Gross" reserves means the total working interest share of remaining
recoverable reserves owned by Twin Butte before deductions of royalties
payable to others.

(3) "Oil Equivalent" amounts have been calculated using a conversion of six
thousand cubic feet of natural gas to one barrel of oil. BOEs may be
misleading, particularly if used in isolation. A boe conversion ratio
of six thousand cubic feet of natural gas to one barrel of oil is based
on an energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the wellhead.
Given the value ratio based on the current price of crude oil as
compared to natural gas is significantly different from the energy
equivalency of 6 mcf: 1 bbl, utilizing a conversion ratio of 6 Mcf: 1
bbl may be a misleading indication of value.

(4) Numbers in tables may not add due to rounding.

Summary of Net Present Value of Future Net Revenue (1)
As at December 31, 2013
Before Income Taxes and Discounted at (%/year)

(1) Gross Company interest reserves include solution gas but do not include
royalties.

(2) Reserve information as at December 31, 2012 and 2013 is prepared in
accordance with NI 51-101.

(3) Oil equivalent amounts have been calculated using a conversion of six
thousand cubic feet of natural gas to one barrel of oil. BOEs may be
misleading, particularly if used in isolation. A boe conversion ratio
of six thousand cubic feet of natural gas to one barrel of oil is based
on an energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the wellhead.
Given the value ratio based on the current price of crude oil as
compared to natural gas is significantly different from the energy
equivalency of 6 Mcf: 1 bbl, utilizing a conversion ratio of 6 Mcf: 1
bbl may be a misleading indication of value.

(4) Numbers in tables may not add due to rounding.

(5)The reserve volumes attributed to the acquisitions are the Company's
best estimate at the effective date based on the December 31, 2012
independent reserve evaluation for the assets less production.

Capital Expenditures (1)

Type

2013 Capital
Expenditures
$(000's)

Land

3,766

Seismic

2,420

Drilling & Completions

65,234

Equipping & Facilities

31,538

G&A and Other

3,479

Total Development Costs

106,437

Acquisition - Black Shire

356,521

Dispositions net

(29,261)

Total A&D

327,260

Total Capital

433,697

(1) Capital expenditures is a non-GAAP measure calculated as the purchase
or sale price of an asset, plus development capital expenditures added
to PP&E

Capital Program Efficiency

2013

Excluding Future Development Costs

FD&A cost - Proved ($/boe)

Additions and revisions (1)

22.47

Acquisitions & Dispositions

37.63

Total

32.28

FD&A costs - Proved plus probable ($/boe)

Additions and revisions (1)

31.43

Acquisitions & Dispositions

21.72

Total

23.50

Forecast 2014 operating netback per boe (2)

34.30

Recycle ratio (2)

Proved plus probable

1.5

Including Changes in Future Development Costs

FD&A costs - Proved ($/boe) (3)

Additions and revisions (1)

24.59

Acquisitions & Dispositions

41.51

Total

35.54

FD&A costs - Proved plus probable ($/boe) (3)

Additions and revisions (1)

38.46

Acquisitions & Dispositions

25.36

Total

27.76

Forecast 2014 operating netback per boe (2)(3)

34.30

Recycle ratio (2)

Proved plus probable

1.2

(1) The aggregate of the additions and revisions costs incurred in the most
recent financial year and the change during that year in estimated
future development costs generally will not reflect total finding and
development costs related to reserve additions for that year.

(3) Oil equivalent amounts have been calculated using a conversion of six
thousand cubic feet of natural gas to one barrel of oil. BOEs may be
misleading, particularly if used in isolation. A boe conversion ratio
of six thousand cubic feet of natural gas to one barrel of oil is based
on an energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the wellhead.
Given the value ratio based on the current price of crude oil as
compared to natural gas is significantly different from the energy
equivalency of 6 Mcf: 1 bbl, utilizing a conversion ratio of 6 Mcf: 1
bbl may be a misleading indication of value.

Under NI 51-101, the methodology to be used to calculate FD&A costs
includes incorporating changes in future development capital ("FDC")
required to bring the proved undeveloped and probable reserves to
proved producing status. For continuity, Twin Butte has presented FD&A
costs calculated excluding and including changes in FDC. Changes in
forecast FDC occur annually as a result of development, acquisition and
disposition activities and capital cost estimates that reflect the
independent evaluator's best estimate of what it will cost to bring the
proved undeveloped and probable reserves on production.

Reserve Life Index

The following table sets forth Twin Butte's reserve life index based on
total proved and proved plus probable reserves and estimated average
first quarter 2014 production of 22,500 boe/d.

Reserve Life Index (years)

Production

Total
Proved

Proved Plus Probable

Oil and NGL (bbl/d)

20,400

4.0

7.4

Natural Gas (mcf/d)

12,600

12.0

17.4

Oil Equivalent (boe/d)

22,500

4.7

8.3

Future Development Costs (Undiscounted)

Year

Proved Reserves
($000s)

Proved Plus Probable Reserves
($000s)

2014

57,900

111,600

2015

57,200

112,700

2016

41,000

91,400

2017

7,900

16,700

2018

1,300

700

Remaining

1,900

7,300

Total (Undiscounted)

167,200

340,400

Net Asset Value

The following net asset value ("NAV") table shows a NAV calculation
under which the Company's reserves would be produced at forecast future
prices and costs. The value is a snapshot in time and is based on
various assumptions, including commodity prices and foreign exchange
rates that vary over time. It should not be assumed that the NAV per
share represents the fair market value of Twin Butte shares. The
calculations below do not reflect the value of the Company's prospect
inventory to the extent that the prospects are not recognized within
the NI 51-101 compliant reserve assessment.

Independent assessment of 385,367 net undeveloped acres at an average
price of $216/acre.

(2)

Net debt is a non-GAAP measure representing the total of bank
indebtedness, accounts payable and accrued liabilities, cash dividend
payable, less accounts receivables, deposits and prepaids

Outlook

Twin Butte has continued to execute on its strategy of delivering
moderate growth while paying a sustainable dividend. With year-end 2013
debt of approximately $361.6 million and anticipated 2014 cash flow in
excess of $210 million, the Company is well financed to pay its annual
dividend and complete its forecast 2014 capital plan of $145 million
while maintaining an all-in payout ratio of under 100%. The recent move
into Provost has strengthened and enhanced the Company's dividend
sustainability and provided a platform for longer term moderate growth.
Heavy oil at Lloydminster has and will remain a core focus for the
Company, however, with enhanced netbacks and recycle rates at Provost,
more capital will be directed to these assets.

The Company will continue to match its capital plan to forecast cash
flow less dividends. Recent positive movement in both oil pricing and
the light to heavy oil differentials, combined with the Company's
strong hedge position, allows Twin Butte to remain confident in the
long term sustainability of the dividend and supports a possible
expansion of the 2014 capital plan.

While remaining strongly positioned with its low risk drilling
inventory, the Company continues to review acquisition opportunities to
further diversify and enhance the Company's commodity and play type
risk.

About Twin Butte:

Twin Butte Energy Ltd. is a dividend paying value oriented intermediate
producer with a significant low risk, high rate of return drilling
inventory focused on large original oil and gas in place play types.
With a stable low decline production base, Twin Butte is well
positioned to provide shareholders with a sustainable dividend with
growth potential over both the short and long term. Twin Butte is
committed to continually enhance its asset quality while focusing on
the sustainability of its dividend. The common shares of Twin Butte are
listed on the TSX under the symbol "TBE".

Reader Advisory

Forward-Looking Statements

In the interest of providing Twin Butte's shareholders and potential
investors with information regarding Twin Butte, including management's
assessment of the future plans and operations of Twin Butte, certain
statements contained in this news release constitute forward-looking
statements or information (collectively "forward-looking statements")
within the meaning of applicable securities legislation.
Forward-looking statements are typically identified by words such as
"anticipate", "continue", "estimate", "expect", "forecast", "may",
"will", "project", "could", "plan", "intend", "should", "believe",
"outlook", "potential", "target" and similar words suggesting future
events or future performance. In particular but without limiting the
foregoing, this news release contains forward-looking statements
pertaining to the following: the amount of horizontal drilling activity
planned for 2014; future dividend levels; funds flow and cash flow
forecasts; the volumes and estimated value of Twin Butte's oil and
natural gas reserves; the life of Twin Butte's reserves; the volume and
product mix of Twin Butte's oil and natural gas production; future oil
and natural gas prices; future operational activities; future results
from operations and operating metrics, including future production
growth and other matters set forth under the heading "Outlook" herein,
including estimated budget levels and targeted pay-out ratio in respect
of the payment of dividends. In addition, statements relating to
"reserves" are deemed to be forward-looking statements as they involve
the implied assessment, based on certain estimates and assumptions,
that the reserves described exist in the quantities predicted or
estimated and can be profitably produced in the future.

With respect to forward-looking statements contained in this news
release, Twin Butte has made assumptions regarding, among other things:
future capital expenditure levels; future oil and natural gas prices
and differentials between light, medium and heavy oil prices; results
from operations including future oil and natural gas production levels;
future exchange rates and interest rates; Twin Butte's ability to
obtain equipment in a timely manner to carry out development
activities; decline rates based on analogous information; its ability
to market its oil and natural gas successfully to current and new
customers; the impact of increasing competition; Twin Butte's ability
to obtain financing on acceptable terms; and Twin Butte's ability to
add production and reserves through its development and exploitation
activities. Although Twin Butte believes that the expectations
reflected in the forward looking statements contained in this news
release, and the assumptions on which such forward-looking statements
are made, are reasonable, there can be no assurance that such
expectations will prove to be correct. Readers are cautioned not to
place undue reliance on forward-looking statements included in this
news release, as there can be no assurance that the plans, intentions
or expectations upon which the forward-looking statements are based
will occur. By their nature, forward-looking statements involve
numerous assumptions, known and unknown risks and uncertainties that
contribute to the possibility that the predictions, forecasts,
projections and other forward-looking statements will not occur, which
may cause Twin Butte's actual performance and financial results in
future periods to differ materially from any estimates or projections
of future performance or results expressed or implied by such
forward-looking statements. These risks and uncertainties include,
among other things, the following: the risks associated with the oil
and gas industry; commodity prices; operational risks in exploration;
development and production; delays or changes in plans; risks
associated with the uncertainty of reserve estimates; health and safety
risks, and; the uncertainty of estimates and projections of production,
costs and expenses. volatility in market prices for oil and natural
gas; general economic conditions in Canada, the U.S. and globally; and
the other factors described under "Risk Factors" in Twin Butte's most
recently filed Annual Information Form available in Canada at www.sedar.com. The recovery and reserve estimates of Twin Butte's reserves provided
herein are estimates only and there is no guarantee that the estimated
reserves will be recovered. Readers are cautioned that this list of
risk factors should not be construed as exhaustive.

The forward-looking statements contained in this news release speak only
as of the date of this news release. Except as expressly required by
applicable securities laws, Twin Butte does not undertake any
obligation to publicly update or revise any forward looking statements,
whether as a result of new information, future events or otherwise. The
forward-looking statements contained in this news release are expressly
qualified by this cautionary statement.

Barrels of Oil Equivalent

Barrels of oil equivalents (boe) may be misleading, particularly if used
in isolation. A boe conversion ratio of 6 Mcf: 1 bbl (barrel) is based
on an energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the wellhead.
In addition, as the value ratio between natural gas and crude oil based
on the current prices of natural gas and crude oil is significantly
different from the energy equivalency of 6:1, utilizing a conversion on
a 6:1 basis may be misleading as an indicated value.

Reserve Life Index

The reader is also cautioned that this news release contains the term
reserve life index ("RLI"), which is not a recognized measure under
generally accepted accounting principles ("GAAP"). Management believes
that this measure is a useful supplemental measure of the length of
time the reserves would be produced over at the rate used in the
calculation. Readers are cautioned, however, that this measure should
not be construed as an alternative to other terms determined in
accordance with GAAP as a measure of performance. Twin Butte's method
of calculating this measure may differ from other companies, and
accordingly, they may not be comparable to measures used by other
companies.

Operating Netback

The reader is also cautioned that this news release contains the term
operating netback, which is not a recognized measure under GAAP and is
calculated as a period's sales of petroleum and natural gas, net of
royalties less net production and operating expenses as divided by the
period's sales volumes. Management uses this measure to assist them in
understanding Twin Butte's profitability relative to current commodity
prices and it provides an analysis tool to benchmark changes in
operational performance against prior periods and to peers on a
comparable basis. Readers are cautioned, however, that this measure
should not be construed as an alternative to other terms such as net
income determined in accordance with GAAP as a measure of performance.
Twin Butte's method of calculating this measure may differ from other
companies, and accordingly, they may not be comparable to measures used
by other companies.

Net Debt

The reader is cautioned that this news release contains the term net
debt, which is not a recognized measure under GAAP and is calculated as
bank debt adjusted for working capital excluding mark-to-market
derivative contracts. Working capital excluding mark-to-market
derivative contracts is calculated as current assets less current
liabilities both of which exclude derivative contracts and current
liabilities excludes the current portion of debt. Management uses net
debt to assist them in understanding Twin Butte's liquidity at specific
points in time. Mark-to-market derivative contracts are excluded from
working capital, in addition to net debt, as management intends to hold
each contract through to maturity of the contract's term as opposed to
liquidating each contract's fair value or less.

Future Oriented Financial Information

This news release, in particular the information in respect of
anticipated cash flows, may contain Future Oriented Financial
Information ("FOFI") within the meaning of applicable securities laws.
The FOFI has been prepared by management of the Company to provide an
outlook of the Company's activities and results and may not be
appropriate for other purposes. The FOFI has been prepared based on a
number of assumptions including the assumptions discussed under the
heading "Forward-Looking Statements" and assumptions with respect to
production rates and commodity prices. The actual results of operations
of the Company and the resulting financial results may vary from the
amounts set forth herein, and such variation may be material. The
Company and its management believe that the FOFI has been prepared on a
reasonable basis, reflecting management's best estimates and judgments.